Rare earth mineral processing race heating up in Saskatchewan

Saskatchewan has taken another step in the race to produce and supply rare earth minerals.

A new strategy — the first on critical minerals — was announced Monday by Jim Reiter, the province’s minister for energy and resources.

Called “Securing the Future,” Reiter explained the modern world is growing in its reliance on critical minerals, with demand surging for computers, household appliances, electric vehicles and wind turbines — all items that rely on critical minerals.

Reiter called the overarching framework important, especially as the world moves towards battery power.

Countries around the world already use Saskatchewan potash, uranium and helium, and Reiter hopes to add rare earth elements and other minerals from the province to that list soon.

“This is something that wasn’t on anybody’s radar just a few years ago and now it’s so important to the future,” Reiter said, calling Saskatchewan “blessed” to have the resources it does.

He said Saskatchewan is home to 23 of the 31 critical minerals named by Canada.

“This is the time for Saskatchewan to capitalize,” Reiter said at NextGen Energy Ltd. in the River Centre. “It’s important that we be front and centre on this.”

The newly announced strategy lays out goals for the exploration, development and production of those minerals over the next seven years.

Four main goals were outlined by Reiter and Minister of Trade and Export Development Jeremy Harrison: Increase Saskatchewan’s share of Canadian mineral exploration spending to 15 per cent by 2030; double the number of critical minerals produced in Saskatchewan by 2030; continue to grow Saskatchewan’s production of potash, uranium and helium; and establish Saskatchewan as a rare earth element processing hub.

More spending on Saskatchewan mineral exploration

Reiter said Saskatchewan’s share of mineral exploration spending last year was 8.5 per cent, but a strong foundation has been set through expansion of three supporting programs in the 2023-24 budget that was announced last week.

That announcement will see Saskatchewan’s mineral exploration tax credit upped from 10 to 30 per cent, tied for the highest mineral incentive in Canada.

The targeted mineral exploration incentive has also been enhanced from $750,000 to $4 million annually, supporting hard rock mineral exploration drilling in the province.

“This will attract further investment,” Reiter said.

A further $2.4-million investment is being made to improve geoscience technology and automation.

“This will provide the best information possible to our explorers and stakeholders,” Reiter shared.

Diversifying critical minerals

Not only does the province want to see more critical minerals coming out of Saskatchewan, but more types as well.

Reiter said there is a commitment to diversifying the sector.

Each mine construction to do so, he explained, takes up significant capital. But the investment will see each also become a powerful driver in the province’s economy — with each mine accounting for about one per cent of the average provincial GDP, according to Reiter.

More potash, uranium and helium coming up

The growing demand for minerals, coupled with Saskatchewan’s competitive business environment and “world-leading geology,” according to Reiter, means there is need for existing critical mineral industries to expand.

Already well-established, Reiter said the desire is to keep industries like potash, uranium and helium in Saskatchewan and healthy.

He referenced $30 billion of committed investments in mine expansions and projects over the past 15 years in Saskatchewan’s potash sector, an industry that directly employs 5,400 people and makes up about 11 per cent of the provincial GDP.

As the only producer of uranium in Canada, Saskatchewan contributed about 10 per cent of the world’s supply in 2021, making it the third-largest producer of the element that year. Cameco’s recent deal with Ukraine will only increase that, Reiter said.

Saskatchewan becoming major hub

Saskatoon Mayor Charlie Clark quipped that rare earth minerals have been so quick to grow in the past few years that it wasn’t long ago he didn’t even know what they were.

Clark called the growth of the critical mineral industry an opportunity for the province and the country, as well as seeing the first rare earth processing facility in North America built in Saskatoon.

“This is going to be a race, especially on the processing side,” Clark shared.

He said the city wants to be a place that attracts talent, jobs and investments while doing so in the most sustainable way.

In this time of volatility, Harrison said Saskatchewan is ready to take on the role of being a steady and stable supplier of these critical rare earth minerals to the world and feels Saskatchewan is in the right place at the right time to do this.

Harrison referenced Saskatchewan’s fully developed mining-focused business environment and technical expertise. He said no other place in Canada has the large, high-quality deposits Saskatchewan does. And the province is ranked first in Canada and second globally as an attractive jurisdiction for mining investment.

“Critical minerals are critical to our future and economic prosperity,” Harrison said, noting companies like NextGen Energy are contributing to the momentum Saskatchewan is already seeing.

He said the Saskatchewan Research Council has taken its role of leadership in developing and moving the industry forward very seriously.

“When you look at Saskatchewan, you see an exciting future,” Harrison said. “Today’s announcement means great things for the people who call this province home.”